MCOG Microloan Program The purpose of the Midcoast Council of Governments (MCOG) Microloan Program is to support the development and ongoing success of rural microentrepreneurs and microenterprises.

Lending Territory All of Sagadahoc, Lincoln and Knox Counties, the towns of Brunswick and Harpswell in Cumberland County and the towns of Lincolnville, Searsmont, Belmont and Northport in Waldo County.

Business Eligibility Borrower must be a microenterprise (i.e. a sole proprietorship or other business entity with 10 or fewer full-time employees) and must be located in the lending territory described above.

Loan Amount Loans up to $50,000 with a minimum loan request of $5,000.

Interest Rate Wall Street Prime (WSP) + 2% - 4% fixed.

Term To be based on the business’ cash flow and useful life of assets being financed; not to exceed 10 years.

Prepayment is allowed without penalty.

Security/Collateral  Assets being financed and other collateral, personal assets and personal guarantees, as required.

Fees  2% Origination Fee and Closing Costs.

Eligible Uses of Funds 

• Business acquisition
• Purchase or lease of real estate that is already improved and will be used as the location of the borrower’s business (MCOG Microloan funds may not be used for construction or demolition.)
• Purchase of furniture, fixtures, equipment, supplies and inventory
• Working capital, excluding revolving lines of credit
• Debt refinancing

Lending Criteria  MCOG looks for the following elements when considering a loan request

• Good character and management capability
• A meaningful stake in the business and amount of cash equity invested
• A written business plan, including financial statements (actual and projected)
• Good internal financial records and cash-flow management
• Collateral sufficient to secure the loan
• Reasonable assurance that revenues are, or will be, sufficient to pay all obligations

For More Information Please contact MCOG for more information, as additional eligibility requirements may apply depending on the proposed project and applicant criteria. For more information about financing your business and to obtain a loan application please contact Brian Dancause, Lending Programs Specialist, at (207) 443-5790, or email bdancause@mceddme.org.

MCOG is an Equal Opportunity Lender

The Federal Equal Opportunity Act prohibits creditors from discriminating against credit applications on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract;); and because all or parts of the applicants income is derived from any public assistance program; or because the applicant has, in good faith, exercised any rights under the Consumer Credit Protection Act.

[BD1]USDA regulations allow 10 year term for RMAP loans, but MCOG's policy preference is 5 years to revolve loan funds.